Weak sales continue for carmaker BYD

Chinese automaker BYD (1211.HK) reported sales of 40,100 cars in April, up slightly from March but down 11% from the previous year, state media reported. BYD, which has been backed by US billionaire Warren Buffett, has seen car sales fall on an annual basis since August, largely due to overly aggressive expansion and sales strategies, analysts said. “At this run rate, the company is probably not very profitable,” said Yuanta Research analyst Johnny Wong. Analysts also said carmakers have been negatively affected by Beijing’s removal of tax incentives for small cars at the beginning of 2011. They project China’s car market to grow more moderately this year, after sales reached a record high in 2010.